There are those who want to purchase a home to get out of the rental rat race. The question is, are they doing what is absolutely necessary to accomplish this? With today’s historically high cost of housing, taxes, and what it takes financially to afford to live, one must take a few steps back to analyze one’s current situation.
Are you taking the required steps to be in a position to buy? Or are you taking life one day at a time, and whatever occurs just happens? Sit down to think and create a future plan to attain what you realistically desire: a home that you own.
It surely isn’t easy to get where you want to be. However, the real shortcut is to save as much as possible. In my opinion, there are three ways to execute this: First, earn more than you spend (create a side hustle income), learn how to invest, and cut your expenses to the bare bones. I am not proposing that this is a simple task to execute and fulfill. Sacrifices have to be made, and that is the hardest part.
We are addicted to creature comforts, e.g., eating out, vacations, buying things that we really may not or don’t need, too much technology, cable TV, buying online, etc. Maybe it is also keeping up with the Joneses, your next-door neighbor, or your group that you are associated with. Whatever path you choose, you will need to take a step back and analyze what is really important in your life.
As it has been currently and in the past, your home has been the greatest asset that most Americans have been fortunate to possess. Will this be the same result going forward? Or will there be a drastic change in the future, when baby boomers will be gone, but are currently the greatest purchasers of real estate? Who will take their place? A multitude of GenZs, GenX and Millennials are strapped with student loans and credit card debt, how will they be in a position to purchase?
As inventory eventually increases due to potentially reduced demand, will prices decrease as we are experiencing in Florida, Texas and areas of California? Will this enable people to be able to afford to purchase?
Sacrifices are absolutely necessary now if you want to buy a home, whether a single-family, condo, or coop. Cutting out those expensive Starbucks coffee breaks, stop eating out, and cut back on your car expenses by leasing or buying a more basic model instead of having all the bells and whistles that aren’t really necessary. As they say, “no pain, no gain.”
If you are married, with or without children, what will your future look like if you do not begin thinking about the money that you will need to create over the next number of years to hopefully retire somewhat comfortably?
What will Social Security look like and will you be able to depend on it as an adjunct to your savings and investments?
If possible, maybe parents or relatives can assist you when you are ready to purchase. Everyone’s situation is different, and you will have to devise a short—and long-term plan to accomplish homeownership. The other solution is to move to a more reasonably priced area outside the local area, maybe upstate or out of NYS entirely.
Having options will make it easier to determine what direction makes the most sense in the brain and cents in your pocketbook.
Philip A. Raices, broker consultant of Turn Key Real Estate,
3 Grace Ave Suite 180 in Great Neck, NY 11021-2415
For a free 15-minute consultation, value analysis of your home, or to answer any of your questions or concerns, call
(516) 647-4289 or by email: Phil@TurnKeyRealEstate.Com Search properties at your leisure and convenience at:
bit.ly/4bXWVu6 (facebook.com)
bit.ly/4inVqaR (X.com)
bit.ly/4bVSwrs (LinkedIn)
bit.ly/4inVK9z (Instagram)
bit.ly/4bQH14x (YouTube)
*Paid advertisement*
